| Special Tax Savings on New Equipment Ends December 31 |
If you are considering a purchase of capital equipment in the near future, now is the time to act! Special tax incentives are available on a wide range of products. If you own a business, one of the most important tax codes you need to be familiar with is Section 179. It lets you deduct the purchase price of many types of equipment that is used for business. Over the years this tax code has helped entrepreneurs and long-established business owners write-off a big portion of their equipment and technology purchases, thereby enabling them to conserve their cash. According to the IRS, the section 179 deduction is currently $25,000 for 2014 with a “total equipment purchased” threshold of $200,000. This means businesses can deduct the full cost of equipment from their 2014 taxes, up to $25,000. This is a sharp drop from last year’s limit, but still presents you with an opportunity to deduct a certain amount of your equipment, technology and software purchases when it comes time to prepare your tax returns. And please note it is still possible that Congress could take action before year end to increase the Section 179 limit of $25,000 higher for 2014. As with all tax-related matters, you should consult with your tax professional for complete details and eligibility requirements. But don't wait, because the potential tax savings go away 12/31/14.
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